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Common Stock/ Ordinary Shares

A share represents a part-ownership of a company. For example, if an investor buys 1000 shares in a company that has issued one million shares, the investor owns one tenth percent of that company. The most common type of shares is ordinary shares. Other types of securities include: preference shares etc.

Ordinary or common shareholders have the right to share in the profits of the company only after preferred shareholders have been paid their dividends. Holders of ordinary shares are paid dividends that vary according to the profitability of the company. Should a company goes bankrupt, its ordinary shareholders will receive a payout only after all other creditors, bondholders and preference shareholders have been paid.

Preferred or Preference Share

Preferred or Preference shares represent ownership of a company but they are different from ordinary shares and more similar to debt instruments. Preference shares in Egypt enjoy double voting rights according to Company Law No. 159 for year 1981.

  • Dividends on preference shares have to be paid before dividends on ordinary shares.
  • Preference shareholders have a higher priority if a company is liquidated than ordinary shareholders, although a lower priority than debt holders.
  • For more information about all listed shares, please click here.
    For more information about all traded shares, please click here.

 

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